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Low valuation on remortgage? help!
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tetraxo
Posts: 1 Newbie
Hi everyone,
new to this forum so please forgive me, but have been lurking and it has been very useful in my househunt!!
to cut a long story short, and without going into details, due to my parnters credit history we were declined a mortgage, so my parents very kindly offered to remortgage their house in order to allow me to purchase a property and pay them back after 5 years with a remortgage of my own property.
anyway, the mortgage company have been over to value their property, we are borrowing 125k from them against their house which is worth a good 275k. However the conservative valuation has come back at 250k which would only allow us to borrow 100k against the house.
as I'm sure you can imagine even in liverpool 100k just isn't feasible for what we need.
we have been told that we can appeal the valuation by finding 3 or 4 houses within a mile of the same type (4 bed semi) which sold for 275k+. We live in quite an affluent area of liverpool (Crosby) so this shouldnt be too difficult, however houses don't get sold around here very often due to the fact that people don't seem to want to move - haha. I have done the obvious and zoopla'd some sold house prices but there are only one or two within the last few months (ans zoopla only shows up until july).
Do we have much chance of an appeal being successful? is there anything that we should do to increase our chances of approval?
any help or input welcome!
thanks in advance
new to this forum so please forgive me, but have been lurking and it has been very useful in my househunt!!
to cut a long story short, and without going into details, due to my parnters credit history we were declined a mortgage, so my parents very kindly offered to remortgage their house in order to allow me to purchase a property and pay them back after 5 years with a remortgage of my own property.
anyway, the mortgage company have been over to value their property, we are borrowing 125k from them against their house which is worth a good 275k. However the conservative valuation has come back at 250k which would only allow us to borrow 100k against the house.
as I'm sure you can imagine even in liverpool 100k just isn't feasible for what we need.
we have been told that we can appeal the valuation by finding 3 or 4 houses within a mile of the same type (4 bed semi) which sold for 275k+. We live in quite an affluent area of liverpool (Crosby) so this shouldnt be too difficult, however houses don't get sold around here very often due to the fact that people don't seem to want to move - haha. I have done the obvious and zoopla'd some sold house prices but there are only one or two within the last few months (ans zoopla only shows up until july).
Do we have much chance of an appeal being successful? is there anything that we should do to increase our chances of approval?
any help or input welcome!
thanks in advance
0
Comments
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However the conservative valuation has come back at 250k which would only allow us to borrow 100k against the house.
Initial question is why?
As for the valuation the property falls close to the £250k stamp duty threshold, i.e. £5k of stamp duty is a lot to pay for an additional £25k of property. So although the property might sell for £275k in a good market . The surveyor may well consider that for the bank to recover it's money quickly that £250k is a more realistic expectation.0 -
A better option if your parents can get a mortgage is for them to buy the new home in their names and let you live in it.
That way they are not exposed to your financial position in the same way.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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